Quick Fix Business Line of Credit!

George was a highly specialized Internet Marketinghire "real" employees.
Computer Geek.George contacted me through the Taxes Will Travel
Every small to large size company who understoodweb site. He explained what his problem was. I asked
the importance of e-commerce was looking forwho his clients were and how much would he be billing
someone with his skills. However, when their HRhis clients eachweek? He was hesitant because he
Department called the Temporary Staffing Agencywas new in business and had no credit references,
that he worked for the Employers would request aexcept his student loan. I explained that his credit was
Computer Programming person with "All" thenot an issue, that the Financing
necessary experience in Computer ProgrammingCompany would be more interested in who his client's
Languages.were. (His client list read like a Whose Who in the
The staffing agency lived by the motto that theCorporate World) When I explained there would be
customer is always right and surely these companies"no problem" I could tell he did not believe me. He was
knew what kind of temporary contract worker theypolite and ask how anyone could get a Line of Credit
needed!for $100,000 without a credit check or Financial
Wrong. It took them a couple months to realize that astatements. I explain to him that his "Customer's" credit
Computer Programmer and an Internet Marketingwas the important factor and as long as he had an
person were two different animals. They did notInvoice, I could find a Lender that would wire the
understand that the Search Engine 'Gods' deal inmonies into his account within 48 hours. He said "OK",
"formulas" They didn't quite understand that no matterbut I could tell he was not sure about me or what I had
how many computer programming languages yousaid to him.
could write that did not mean you understood how toI told him that I would have one of the Vice-president's
increase the number of web site visitors to 25,000 inof one of the major companies that provide Invoice,
one week and to 50,000 the next week.Lines of Credit to Staffing Agencies contract him later
George knew he had to do something, he had learnedthat afternoon.
that the way to riches was to find a need and fill it.As I hung up the phone, I was hoping my contract
And there clearly was a need for a Staffing Agencywould be available to talk to George as soon as
who could provide skilled and professional Internetpossible. George needed to hear someone from the
Marketing persons to the Corporate Worldat a"top" say that there should be 'no problem.' I knew I
reasonable hourly rate.had to move fast. As usual Mr. X was available to talk
George did his homework; there was room at the topto my client that afternoon. George was instructed to
of the Temporary Staffing Industry for him. Yes, a lotfax information to the company that I had selected for
of the larger companies were hiring PR firms to dohim based upon his needs, and was able to Factor
their Internet Marketing, but the PR Firms needed toover $70,000 in Invoices that same week.
hire a new type of marketing person. These new typeThe Financial company wired the monies into his
of marketing persons had to be computer gurus. It didaccount and he was only a day late with his payroll --
not much matter that they had never written a pressOf course we blamed it on the mail!
release a day in their life, it only mattered that theyGeorge's need to hire Employee's to handle the
understood Google ranking algorithm and Froogle'sincreasing number of contracts that his small staffing
(Google's cousin) way of life.agency was getting was the reason for his need to
George had every thing in place; he had collecteddo what we call "Factoring" or Accounts Receivable
dozens of his computer geek friends who wanted toFinancing, or Invoice, Line of Credit.
work independent contract jobs once or twice aThe Pilgrim's journeys to America were financed by
week. He trained them in the ways of the searchadvances from a Factor who provided the funds to
engine spiders, SEO, link popularity and otherpay for the journey. The Pilgrims repaid the money
necessary task. There was just one problem, andwith earnings from America. Factoring to this day is an
that's how I meet George.extremely common business practice in Europe
George's small staffing business begin to grow fasterwhereas many American business men have never
then his Accounts Receivables.heard of it.
George did not have the cash flow to pay his contractFactoring is the selling of your accounts receivable for
workers until the corporations paid him. Even after hecash versus waiting 30-60 or 90 days to be paid by
invoiced his corporate client's it would take 30 or moreyour customer. When you provide a Factoring
days to receive a check. Since there were about 20company with copies of your invoices, the Factoring
close friends working with George, there had been noCompany uses your invoices to make a loan to your
real problem. But now, there were dozens more clients'company. It is a simple process and can be automated
who needed his services and he had no choice but toafter the first transaction.